CDN Costs- Akamai, Limelight, Netflix

Akamai has the scale to price ridiculously low at 1.5 cents per gigabyte. This is not a price level that can be sustained given the market dynamics and it’s not an assumption I’d use when trying to model streaming costs.

Netflix is paying Akamai about one and half cents per GB delivered for a couple of months before Netflix’s pricing goes back to about six cents per GB delivered. At a penny and half, that’s about 3x cheaper than what Limelight charges Netflix and is at a price that Limelight simply can’t match.